Revenue and Income - Jackson Financial's revenues are primarily derived from fee income, spread income from investments, and margins on insurance products [289]. - Net income attributable to common shareholders for Q2 2025 was $168 million, down from $264 million in Q2 2024, while adjusted operating earnings were $350 million compared to $410 million in the same period [294]. - Total revenues for the three months ended June 30, 2025, were $471 million, a significant decrease from $1,247 million in the same period of 2024 [340]. - The company reported a net income attributable to Jackson Financial Inc. of $179 million for the three months ended June 30, 2025, down from $275 million in 2024 [350]. - Adjusted Operating Earnings for Q2 2025 were $350 million, a decrease of 14.6% compared to $410 million in Q2 2024 [332]. - The company experienced a $1,631 million decrease in total net gains (losses) on derivatives and investments, resulting in total net losses of $3,187 million for the three months ended June 30, 2025 [341]. Business Segments - The company manages its business through three reportable segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks [292]. - Total retail annuity sales for Q2 2025 reached $4,380 million, an increase from $4,229 million in Q2 2024, driven by higher fixed annuity sales [300][301]. - Total institutional product sales for Q2 2025 were $930 million, significantly higher than $612 million in Q2 2024, reflecting an opportunistic approach to the business [300][301]. - Institutional Products segment's pretax adjusted operating earnings decreased by $10 million to $19 million for Q2 2025, down from $29 million in Q2 2024, primarily due to a $9 million decrease in spread income [358]. - Closed Life and Annuity Blocks segment's pretax adjusted operating earnings decreased by $13 million to $22 million for Q2 2025, down from $35 million in Q2 2024 [362]. Assets and Management - Significant assets are held due to funds withheld reinsurance arrangements, including the Athene Reinsurance Transaction, which benefits the related reinsurer [290]. - As of June 30, 2025, total assets under management (AUM) reached $336,725 million, up from $324,718 million on December 31, 2024, reflecting a growth of approximately 3.1% [308]. - Jackson invested assets increased to $51,302 million as of June 30, 2025, compared to $46,143 million at the end of 2024, representing an increase of about 11.7% [308]. - The total policy and contract liabilities reached $299,938 million as of June 30, 2025, compared to $293,402 million on December 31, 2024 [389]. - The total carrying value of commercial mortgage loans was $9,046 million as of June 30, 2025, compared to $8,942 million at December 31, 2024, indicating an increase of about 1.2% [381]. Cash Flow and Capital Management - Free cash flow for the parent company was $290 million in Q2 2025, up from $229 million in Q2 2024, and $503 million for the six months ended June 30, 2025, compared to $249 million in the same period last year [295]. - The company returned $447 million to common shareholders in the first half of 2025, consisting of $117 million in dividends and $330 million in share repurchases, with a target of $700-$800 million for the full year [295]. - The company’s free cash flow is defined as net cash provided by operating activities less preferred stock dividends, which is crucial for capital return to common shareholders [338]. - Cash flows from financing activities increased by $904 million to $968 million for the six months ended June 30, 2025, compared to $64 million for the same period in 2024 [402]. Risk Management and Market Conditions - The company emphasizes disciplined risk management and cost control to maintain profitability [289]. - The company does not directly hedge against market risk benefit liabilities, leading to net income volatility [291]. - Market volatility and economic uncertainty could pressure sales and reduce demand for products, as consumers may consider alternative options [311]. - The company anticipates that rising interest rates may lead to lower hedging costs and reduced levels of hedging going forward, potentially offsetting near-term hedging losses [315]. Regulatory and Tax Considerations - The 2024 Fiduciary Advice Rule may lead to changes in compensation practices and product offerings, potentially impacting annuity sales through distribution partners [322]. - Changes in U.S. tax laws could materially affect the demand for the company's annuities, impacting overall sales [326]. - The effective income tax rate for the three months ended June 30, 2025, was 2%, down from 11% in the same period of 2024, reflecting changes in taxable income relative to pre-tax income [344]. Investment Portfolio - The investment portfolio primarily consists of fixed-income securities, with a focus on maintaining a diversified and largely investment-grade fixed income portfolio [369]. - Available-for-sale debt securities increased to $43,814 million as of June 30, 2025, from $40,289 million at December 31, 2024, representing a growth of approximately 6.3% [374]. - The total fair value of debt securities was $47,128 million as of June 30, 2025, up from $43,335 million at December 31, 2024, indicating an increase of about 8.5% [376]. Shareholder Returns - During Q2 2025, Jackson paid cash dividends totaling $69 million, with $58 million for common shares and $11 million for preferred shares [414]. - Jackson repurchased 3,887,063 shares of common stock for an aggregate purchase price of $330 million in the six months ended June 30, 2025 [415].

Core Insights - Jackson Financial (JXN) is expected to report quarterly earnings of $4.61 per share, a decline of 13.4% year-over-year, with revenues forecasted at $1.76 billion, reflecting a decrease of 37.3% compared to the same period last year [1] Earnings Estimates - The consensus EPS estimate has been revised 9.9% higher over the last 30 days, indicating a collective reevaluation by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenues- Net investment income' at $510.28 million, a year-over-year decline of 31.8% [5] - 'Revenues- Other income' is projected at $12.50 million, showing a year-over-year increase of 25% [5] - 'Revenues- Premium' is expected to reach $39.85 million, reflecting a 7.7% increase year-over-year [5] - 'Revenues- Fee income' is forecasted at $1.20 billion, indicating a significant decline of 40.5% year-over-year [6] Adjusted Earnings Before Tax - 'Adjusted earnings before tax- Retail Annuities' is projected at $410.27 million, down from $465.00 million in the same quarter last year [6] - 'Adjusted earnings before tax- Closed Life and Annuity Blocks' is estimated at $24.68 million, compared to $35.00 million a year ago [7] - 'Adjusted earnings before tax- Institutional Products' is expected to be $19.12 million, down from $29.00 million in the previous year [7] Stock Performance - Jackson Financial shares have decreased by 5.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.6% [7] - The company holds a Zacks Rank 1 (Strong Buy), suggesting it is expected to outperform the overall market in the near term [7]

Core Viewpoint - Jackson Financial is experiencing a decline in stock performance and is expected to report lower earnings and revenue in the upcoming earnings release, indicating potential challenges ahead for the company [1][2][3]. Company Performance - Jackson Financial's stock closed at $85.97, down 2.59% from the previous day, underperforming the S&P 500, which fell by 0.13% [1]. - Over the past month, the company's shares have decreased by 1.12%, while the Finance sector gained 2.08% and the S&P 500 increased by 3.39% [1]. Upcoming Earnings - The earnings report for Jackson Financial is anticipated on August 5, 2025, with expected earnings of $4.61 per share, reflecting a year-over-year decline of 13.35% [2]. - Revenue is projected to be $1.76 billion, indicating a significant decrease of 37.28% compared to the same quarter of the previous year [2]. Fiscal Year Projections - For the entire fiscal year, earnings are projected at $20.14 per share, representing a 7.18% increase from the prior year, while revenue is expected to decline by 21.46% to $7.18 billion [3]. - Recent revisions to analyst forecasts are crucial as they indicate changing business trends, with positive revisions suggesting a favorable business outlook [3]. Valuation Metrics - Jackson Financial is currently trading at a Forward P/E ratio of 4.38, which is significantly lower than the industry average Forward P/E of 8.93, indicating a potential undervaluation [6]. - The Insurance - Life Insurance industry, to which Jackson Financial belongs, holds a Zacks Industry Rank of 23, placing it in the top 10% of over 250 industries [6]. Zacks Rank and Performance - The Zacks Rank system, which assesses stocks based on estimate revisions, currently rates Jackson Financial as 1 (Strong Buy), reflecting a positive outlook [5]. - Over the last 30 days, the Zacks Consensus EPS estimate for Jackson Financial has increased by 4.27% [5].

Group 1 - Jackson Financial (JXN) stock closed at $87.50, reflecting a -1.16% change from the previous day, underperforming the S&P 500's daily loss of 0.01% [1] - Over the past month, Jackson Financial shares appreciated by 3.11%, lagging behind the Finance sector's gain of 4.74% and the S&P 500's gain of 5.37% [1] Group 2 - The upcoming earnings report for Jackson Financial is scheduled for August 5, 2025, with an expected EPS of $4.61, indicating a 13.35% decline year-over-year, and a revenue forecast of $1.76 billion, representing a 37.28% decrease [2] - For the full year, analysts expect earnings of $20.14 per share and revenue of $7.18 billion, marking changes of +7.18% and -21.46% respectively from the previous year [3] Group 3 - Recent adjustments to analyst estimates for Jackson Financial reflect short-term business trends, with positive revisions indicating analysts' confidence in the company's performance and profit potential [4] - Empirical research shows a direct correlation between estimate revisions and stock price performance, leading to the creation of the Zacks Rank model [5] Group 4 - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks producing an average annual return of +25% since 1988; Jackson Financial currently holds a Zacks Rank of 1 [6] - Jackson Financial's Forward P/E ratio is 4.4, significantly lower than the industry average of 8.78, suggesting it is trading at a discount [7] Group 5 - The Insurance - Life Insurance industry, part of the Finance sector, has a Zacks Industry Rank of 12, placing it in the top 5% of over 250 industries [7] - The Zacks Industry Rank evaluates the performance of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

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Core Viewpoint - Jackson Financial (JXN) has reached a significant support level and shows potential as a good investment pick from a technical perspective, having recently broken through the 20-day moving average, indicating a short-term bullish trend [1]. Technical Analysis - The 20-day simple moving average (SMA) is a popular trading tool that reflects a stock's price over a 20-day period, smoothing out short-term price trends and providing trend reversal signals [2]. - JXN's stock price has been moving higher over the past four weeks, increasing by 5.2%, and is currently rated as a Zacks Rank 1 (Strong Buy), suggesting potential for continued upward movement [3]. Earnings Estimates - Recent revisions in JXN's earnings estimates show one upward revision for the current fiscal year with no downward revisions, indicating a positive consensus estimate trend [4]. - The combination of the technical indicator and positive earnings estimate revisions suggests that investors should consider adding JXN to their watchlist [4].

Financial Performance - In 2024, annuity sales reached $178 billion, with AUM (Assets Under Management) at $325 billion[8] - Free capital generation for 2024 was $13 billion, and capital return was $631 million[8] - For the first quarter of 2025, the net loss attributable to Jackson Financial Inc common shareholders was $35 million, or $048 per share[15, 16] - Adjusted Operating Earnings for 1Q25 was $376 million, or $510 per share[15, 16] - Retail annuity sales for 1Q25 totaled $40 billion, a 9% increase over the prior year[16] - Consolidated Pretax Adjusted Operating Earnings for 1Q25 was $442 million, while Retail Annuity Pretax Adjusted Operating Earnings was $420 million[16] Capital Management - Cash distributed to JFI increased significantly from $45 million in 1Q24 to $240 million in 1Q25[19] - Free cash flow increased from $20 million in 1Q24 to $213 million in 1Q25[19] - Capital returned to common shareholders increased from $172 million in 1Q24 to $231 million in 1Q25[21] - JNLIC's estimated RBC ratio was 585% as of the end of 1Q25, after reflecting $240 million of distributions from JNLIC to JFI[26]

Group 1 - Jackson Financial (JXN) closed at $85.86, reflecting a +2.29% increase from the previous day, outperforming the S&P 500's 0.03% loss [1] - Prior to the latest trading session, Jackson Financial shares had decreased by 1.29%, which was less than the Finance sector's loss of 1.73% and the S&P 500's gain of 0.6% [1] Group 2 - Jackson Financial is expected to report an EPS of $4.66, indicating a 12.41% decline from the same quarter last year, with a revenue forecast of $1.77 billion, down 36.75% year-over-year [2] - For the full year, analysts project earnings of $19.31 per share and revenue of $7.1 billion, representing changes of +2.77% and -22.25% respectively from the previous year [3] Group 3 - Recent analyst estimate revisions for Jackson Financial suggest a positive outlook for the business, as these changes reflect short-term business trends [3][4] - The Zacks Rank system, which includes estimate changes, currently ranks Jackson Financial at 3 (Hold) [5] Group 4 - Jackson Financial has a Forward P/E ratio of 4.35, which is lower than the industry average of 8.48, indicating that the company is trading at a discount compared to its peers [6] - The Insurance - Life Insurance industry, part of the Finance sector, holds a Zacks Industry Rank of 79, placing it in the top 33% of over 250 industries [6][7]

Financial Data and Key Metrics Changes - Adjusted operating earnings for the first quarter of 2025 were $376 million, reflecting a 13% increase compared to the previous year [5][13] - Adjusted operating earnings per share rose over 20% year-over-year, reaching $5.2, up from $4.16 in the prior year's first quarter [6][16] - The estimated Risk-Based Capital (RBC) ratio increased to 585%, well above the minimum requirement of 425% [29] Business Line Data and Key Metrics Changes - Retail annuity sales exceeded $4 billion, marking a more than 9% increase from the previous year [7] - Sales of variable annuities grew by 9% year-over-year, totaling $2.7 billion, with a notable 40% increase in sales of variable annuities without living benefits [7][8] - Fixed and fixed indexed annuity sales showed meaningful growth, although at a moderated level compared to the second half of the previous year [9] Market Data and Key Metrics Changes - Advisory sales increased by 28% compared to the first quarter of 2024, with an annual run rate exceeding $1 billion [10] - The average retail annuity assets under management (AUM) rose to $246 billion, up from $242 billion in the first quarter of 2024 [19] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to growth, focusing on both organic and inorganic opportunities, including potential acquisitions in the annuity business [38] - Jackson is committed to product innovation and expanding distribution channels, particularly through financial professionals at JPMorgan Wealth Management [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility, emphasizing the importance of providing security to Americans planning for retirement [11][33] - The company remains focused on delivering flexible protection and income-oriented solutions, which are increasingly valued during uncertain market conditions [12] Other Important Information - The company returned over $230 million to common shareholders in the first quarter, with a cash dividend of $0.80 per share approved for the second quarter [10][11] - The hedging program reported a consolidated net hedge loss of $134 million, but the overall strategy has provided stability in capital generation [20][22] Q&A Session Summary Question: Interest in acquiring in the annuity business - Management acknowledged past successful acquisitions and stated that future opportunities would be evaluated against the value of share buybacks or balance sheet strengthening [38] Question: Strategy regarding spread-based products - Management indicated that they are actively evaluating competitiveness and pricing strategies while maintaining discipline in their approach to spread products [41] Question: Fee-based advisers selling more annuities - Management highlighted the importance of providing choice to advisers and the growth of modeling and financial planning tools that support both fee-based and commission structures [50]

Financial Data and Key Metrics Changes - Adjusted operating earnings for the first quarter of 2025 were $376 million, reflecting a 13% increase compared to the previous year [5][14] - Adjusted operating earnings per share rose over 20% year-over-year, with reported earnings per share at $5.1, adjusted to $5.2 after accounting for notable items, marking a 25% increase from $4.16 in the prior year's first quarter [6][17] - The estimated Risk-Based Capital (RBC) ratio increased to 585%, well above the minimum requirement of 425% [29] Business Line Data and Key Metrics Changes - Retail annuity sales exceeded $4 billion, up more than 9% from the previous year, with variable annuities sales increasing by 9% to $2.7 billion [7][18] - Sales of the RILA product reached $1.2 billion, supporting diversification in top-line growth [18] - Advisory sales increased by 28% year-over-year, with an annual run rate exceeding $1 billion [11] Market Data and Key Metrics Changes - The company reported a healthy and profitable book of business, generating excess capital and maintaining a strong liquidity position with over $600 million in holding company liquid assets [11][30] - The company noted that the demand for variable annuity products remains strong, particularly among retiring Americans seeking asset growth and guaranteed income [8] Company Strategy and Development Direction - The company aims to continue delivering on its financial targets while positioning itself for long-term profitability, with a focus on the annuity industry and providing flexible protection and income-oriented solutions [12][34] - The company is open to evaluating inorganic growth opportunities, emphasizing the importance of comparing potential acquisitions to share buybacks and balance sheet strengthening [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility, highlighting the effectiveness of their hedging program in stabilizing capital generation [25][32] - The company remains committed to serving financial professionals and their clients, focusing on helping Americans grow and protect their retirement savings [36] Other Important Information - The company announced a second-quarter cash dividend of $0.80 per common share, reflecting its commitment to returning capital to shareholders [12] - The company reported a consolidated net hedge loss of $134 million in the first quarter, but noted that their hedging program has provided stability in non-operating results [21][22] Q&A Session Summary Question: Interest in acquiring in the annuity business - Management acknowledged past successful bolt-on acquisitions and stated that any future opportunities would be evaluated against the value of share buybacks or balance sheet strengthening [40] Question: Strategy regarding spread-based products - Management indicated that they approach the market with discipline and are open to ideas and opportunities to enhance competitiveness, while noting growth in sales of spread products [43][44] Question: Fee-based advisers selling more annuities - Management highlighted the importance of providing choice to advisers and the growth of the RIA space, emphasizing the development of modeling and financial planning tools for fee-based advisers [52][53] Question: Impact of capital in April at Brook Re - Management described the impact as modest and reiterated their focus on maintaining sufficient capital above regulatory levels [58][60] Question: Sensitivity to market rates and potential capital contributions - Management explained that scenarios requiring capital contributions would involve high volatility combined with deep equity stress, similar to past financial crises [68][70]